Okonkwo says high revenue deductions weakening aviation sector

Managing Director of the Federal Airports Authority of Nigeria (FAAN), Olubunmi Kuku, has said the Federal Government’s resolution of the concession crisis involving the Murtala Muhammed Airport Terminal Two (MM2) would strengthen investor confidence.

Kuku also said the resolution of the dispute would pave the way for more successful Public-Private Partnership (PPP) projects in Nigeria’s aviation sector.

A statement by FAAN yesterday revealed that Kuku spoke at the just-concluded African Air Transport Convention & Expo 2026, held in Lome, Togo.

Speaking as a panellist on the topic: ‘Strategic Direction on Aviation Financing and Infrastructure Development,’ Kuku said while access to capital was important, the success of PPP arrangements depended largely on institutional credibility, regulatory certainty and project discipline.

The Managing Director noted that many PPP projects in Nigeria had suffered setbacks due to policy inconsistencies, market risks and concerns over project continuity.

According to her, the MMA2 concession, operated by Bi-Courtney Aviation Services Ltd (BASL), had remained one of the most publicised concession projects in the country’s aviation industry, regrettably with years of controversies.

Kuku explained that the resolution of the contractual agreement would send positive signals to both local and international investors interested in participating in infrastructure projects through PPP arrangements.

Chairman of United Nigeria Airlines, Prof. Obiora Okonkwo, at another forum, called for a comprehensive review of the aviation remittance framework, warning that heavy deductions from industry-generated revenues are undermining the sector’s growth and efficiency.

Okonkwo appealed in Lagos during the unveiling of the airline’s newly acquired Boeing 737-800NG aircraft.

According to him, regulators and service providers, such as the Nigerian Civil Aviation Authority (NCAA) and the Federal Airports Authority of Nigeria (FAAN), require greater financial autonomy to address operational and infrastructure gaps across the industry.

He argued that aviation revenues should be largely retained within the agencies that generate them rather than being heavily deducted and remitted to the Federal Government, a practice he said would weaken institutional capacity.

Okonkwo stressed that predictable and adequate funding was essential for aviation bodies to maintain safety standards, upgrade infrastructure, and meet growing operational demands across Nigeria’s aviation ecosystem.

He further noted that strengthening the financial base of aviation institutions would improve oversight, enhance airport facilities, and support safer and more efficient operations.